The United States Securities and Exchange Commission (SEC) has published new guidelines that could cause publicly traded companies to disclose their exposure to crypto assets.
In a statement published on December 8, The SEC’s Division of Corporate Finance asserted that recent turmoil in the crypto-asset market has “caused widespread disruption,” noting that companies may have disclosure obligations under federal securities laws to disclose whether these events might have an impact on your business.
The SEC has also included a sample letter that would be addressed to companies requesting additional information about the company’s exposure to cryptocurrency bankruptcies, crypto asset volatility, and any other significant cryptocurrency market developments.
The first question asks the company to provide information about any “significant developments in the crypto-asset market” that may affect the company’s financial condition, results or share price, including the impact of volatility in crypto-asset prices. the cryptoactives.
Other questions ask the company to discuss how certain bankruptcies have impacted or may impact the business, including whether “excessive redemptions or withdrawals” have been experienced or the extent to which crypto assets are being used as collateral for loans.
The model letter also asks the company to describe any material risks to the business from regulatory developments related to crypto assets, or risks facing the assertion of jurisdiction by US and foreign regulators or other government entities over crypto assets. and the crypto asset markets.
In the accompanying text, the SEC explained that it “selectively reviews filings […] to monitor and improve compliance with applicable disclosure requirements.”
He noted that companies are already required to provide additional information as necessary to avoid misleading investors.
“In compliance with their information obligations, companies must take into account the need to address the evolution of the cryptoactive market in their presentations”the agency added.
The SEC has been preparing for more oversight of cryptocurrencies in recent months, opening new offices—an Office of Crypto Assets and an Office of Industrial Applications and Services—specifically for that purpose. The SEC and other agencies have recently come under fire for their lack of enforcement in high-profile cases.
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